Whirlpool Corporation (WHR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,570,000 | 1,958,000 | 3,044,000 | 2,924,000 | 1,952,000 |
| Short-term investments | US$ in thousands | — | 42,000 | — | — | — |
| Receivables | US$ in thousands | 1,529,000 | 1,555,000 | 3,100,000 | 3,109,000 | 2,198,000 |
| Total current liabilities | US$ in thousands | 6,948,000 | 5,931,000 | 8,510,000 | 8,330,000 | 8,369,000 |
| Quick ratio | 0.45 | 0.60 | 0.72 | 0.72 | 0.50 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,570,000K
+ $—K
+ $1,529,000K)
÷ $6,948,000K
= 0.45
The quick ratio of Whirlpool Corp. has shown fluctuations over the past five years. In 2023, the quick ratio decreased to 0.55 from 0.70 in 2022, indicating a potential decrease in the company's ability to meet its short-term obligations using its most liquid assets. This decrease could be a cause for concern as it suggests that the company may have fewer liquid assets available compared to its current liabilities.
Comparing 2023 to 2021, where the quick ratio was 0.82, there has been a noticeable decline in liquidity. However, it is worth noting that the quick ratio remained constant at 0.82 in both 2021 and 2020, indicating a stable liquidity position during those years.
The lowest quick ratio in the provided data is seen in 2019 at 0.59, suggesting a less favorable liquidity position compared to the other reported years. Overall, the trend in the quick ratio of Whirlpool Corp. shows some variability, with the company's liquidity position experiencing fluctuations over the observed period.
It is important for stakeholders to closely monitor this ratio to assess the company's short-term liquidity and ability to meet its obligations. Further analysis and investigation into the underlying reasons for these fluctuations may be necessary to understand the company's financial health more comprehensively.
Peer comparison
Dec 31, 2023